BWSC and PensionDanmark establish new Power Plant in England
Burmeister & Wain Scandinavian Contractor A/S (BWSC) and the fund Copenhagen Infrastructure I with PensionDanmark as investor continue their successful joint venture and create their second biomass fired power plant in England. The investment in the power plant “Snetterton” is of DKK 1.6 billion.
In 2013 BWSC and Copenhagen Infrastructure I established a joint venture with the aim to create, own and run power plants abroad. The company closed its first contract on a power plant in England in 2013. Today the company has signed yet another contract on the biomass plant, Snetterton in East Anglia, Eastern England.
“When we first created the company, I expected that by combining our leading technology in the field of power plants with strong financial powers we would create a company with strong competitive abilities. What we see today is exactly that”, Anders Heine Jensen, CEO of BWSC states.
BWSC is in charge of constructing, operating and maintaining the power plant throughout a 15-year period. The new power plant is scheduled to be up and running by spring 2017. The power plant will have a capacity of 44.2 MW equivalent to the average energy usage of 82,000 households, and the company has contracted for supply of straw for the next 12 years.
The investment in Snetterton is of DKK 1.6 billion. PensionDanmark invests DKK 1.4 billion, which is financed through Copenhagen Infrastructure I, managed by Copenhagen Infrastructure Partners. BWSC invests DKK 0.2 billion in the power plant.
“There are great perspectives in this kind of cooperation. We have high demands to the industrial partners we work with on joint ventures, and BWSC fully live up to our expectations. We have to secure our members a good and steady return, and this cooperation delivers that.” Torben Möger Pedersen, CEO of PensionDanmark.
This is the second biomass power plant created by BWSC PCL in England. Last year the company invested DKK 1.4 billion in the Brigg project further north in England, in Lincolnshire.
“There are great advantages in a more direct cooperation between financial and industrial partners in the energy sector. It is not always easily established, but this cooperation is a good example of how it can be done, and benefits all parties involved.” Christian Skakkebæk, Senior Partner in Copenhagen Infrastructure Partners.
Facts about the project
Snetterton Renewable Energy Plant is a biomass-fired power plant, which primarily will be fired with locally produced straw, and will have a capacity of 44.2 MW. The production will be equivalent to the energy consumption of 82,000 households and will result in a yearly CO2 reduction of 300,000 tons.
BWSC shall construct of the biomass-fired power plant, and will also be in charge of the operation and maintenance of the plant over a 15-year period.
The power plant is expected to be in operation by the spring of 2017, and is based on energy technology developed in Denmark. The main part of the power plant is a boiler from the Danish company Burmeister & Wain Energy (BWE), which is especially suited for firing with straw.
The Snetterton project developers are Iceni and ECO2, who also developed Brigg.
About Copenhagen Infrastructure Partners
Copenhagen Infrastructure Partners P/S (CIP) is a fund management company focused on energy infrastructure including offshore wind, onshore wind, solar PV, biomass and energy-from-waste, transmission and distribution, and other energy assets like reserve capacity and storage. CIP has approximately 110 employees and offices in Copenhagen, Taipei, New York, Tokyo, Utrecht, and London.
CIP manages six funds and has more than EUR 8 bn under management. CI I, CI A I and CI A II have PensionDanmark as founding- and sole investor. CI II has 19 Danish and international institutional investors and CI III has 42 institutional investors from the Nordics, Continental Europe, the UK, Israel, Asia, Australia, and multi-lateral organizations e.g. EIB. CI NMF I has 15 investors from the Nordics and Continental Europe.
CIP was founded in 2012 by senior executives from the energy industry in cooperation with Pension Denmark.